The foundation of planning is reliable, standardized data that your whole team can see in one place, making this the hardest step of creating your PFEP. This task can be laborious, but a lot of your part-level raw data is already stored in your ERP system. The first step is to gather your inventory data and begin to plan for every part. Once your teams are aligned on priorities in optimizing inventory levels, there are three critical steps to creating a PFEP: Plan and Collect Supply Chain Data So, take a step back and say, “Let’s get our system optimized upfront,” and then manage only the exceptions going forward. If you don’t have the process set correctly, then you’ll either feel like you didn’t get the right results or, if you did get them, that it took a huge amount of manual intervention. The first step to operationalizing and reap the rewards of your PFEP is to ensure the challenges you’re trying to solve align with your teams’ goals. Instead of letting reactive issues get in the way of company goals, why don’t we implement repeatable processes and standard data analysis tools to ensure our ERP systems’ longevity in the first place? Plan for Every Part Keeps Your ERP at its BestĪ PFEP can soothe countless pains, from critical shortages to ballooning excess and obsolete (E&O) inventory. Look familiar? Your PFEP not only helps you create policies that ensure your ERP’s longevity but also helps buyers and planners work proactively to optimize the supply chain. Safeguarding against shifting demand and sales forecasts.Addressing critical shortages on some parts and bloated inventory on others. This daily firefighting can come in the form of: Daily critical issues can get in the way of regular maintenance and upkeep of ERP data and order policies. When Your Factory ERP is Stalling, PFEP Can HelpĮven with the regular maintenance included in your ERP’s services, you still need to maintain all of the information you put into the system. Ultimately, the end-goal of creating a PFEP is to help you right-size your inventory as fast as possible without running into parts shortages that may hinder production time. A PFEP is a competitive weapon that enables supply chain leaders to glean a 360-degree view of their inventory and procurement policies to make sure each inventory dollar is maximized. PFEP optimizes the policies that define how to procure each part. What Is a Plan For Every Part (PFEP) and Why Is It Important? Instead of churning through noise to look for exceptions, your team can instead efficiently manage the outliers that most affect your supply chain. As your team develops inventory optimization goals to reduce shortages, improve working capital, and ultimately maximize production throughput, your PFEP can help you prioritize opportunities that can create the biggest impact in end-to-end inventory management. That’s why lean manufacturers introduced the Plan for Every Part (PFEP). Without a simple, structured process for routine inventory data updates, it’s even harder to see and act on opportunities for improvement in the factory. And while ERPs can hold all of that inventory data, they require expensive, manual, and time-intensive maintenance to keep up to date. And as soon as it’s analyzed, the inventory data may already be out of date. However, inventory data collection is often tedious and manual, and it can take weeks, if not months, to complete. Supply chain leaders, already tasked with the daily responsibilities of firefighting through shortages and ballooning inventory, also have compounded responsibilities to guarantee sustainable on-time delivery over time. How Can Plan for Every Part (PFEP) Help Optimize My Supply Chain?Īs supply chains grow increasingly complex, it can feel impossible to understand how to assess and optimize inventory from end to end. Visit the knowledge center or contact our dedicated customer success team
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